BlackRock Bitcoin ETF Attracts Mostly Individual Investors, Data Shows

The surge in interest towards spot bitcoin ETFs, particularly BlackRock’s iShares Bitcoin Fund (IBIT), reveals a predominant retail investor participation. The data, indicating an average trade size of about $13,000, points to the involvement of individual, nonprofessional investors rather than large institutions. Since their introduction in January, these ETFs have seen a significant influx of capital, aligning with an uptick in positive sentiment towards cryptocurrency.

Bloomberg Intelligence’s senior ETF analyst, Eric Balchunas, notes that the volume and size of trades for IBIT suggest a retail-driven momentum. “There’s probably some advisers in there, but, largely speaking, based on the size of the trades, it looks like retail is definitely a big factor,” Balchunas remarked. This is echoed by a person familiar with the matter at BlackRock, who confirmed that while interest spans across various investor types, retail investors are a major source of capital inflow.

IBIT stands out in the bitcoin ETF market, having gathered over $14 billion in assets within two months of its launch. Balchunas praises BlackRock’s strategy, highlighting its appeal to a wide audience through high liquidity and low fees. “BlackRock is everything to everybody,” he asserts, underscoring the power of the BlackRock brand in attracting investors.